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City Council Report


City Council Meeting: February 26, 2013

Agenda Item: 3-D

To: Mayor and City Council 

From: Martin Pastucha, Director of Public Works

Subject: Purchase Order Amendment for Street Maintenance Slurry Material



Recommended Action


Staff recommends that the City Council amend Purchase Order No. 342316-OP with Petrochem Manufacturing, Inc. (PMI), a California-based company, in the amount of $338,333.76 for the purchase and delivery of slurry materials and authorize this as a sole source purchase. This will result in a total purchase order amount of $434,333.76, with future year funding contingent on Council budget approval.


Executive Summary

The purchase order for slurry materials and delivery with PMI is projected to exceed the $100,000 City Council approval threshold in FY2012-13. Slurry seals are a mixture of asphalt emulsion, graded aggregates, mineral filler water, and other additives, which result in a free flowing composite material that can be spread over the existing road surface. Staff recommends increasing the vendor purchase order to cover existing commitments and fund necessary purchases through the end of FY2012-13 and for FY2013-14.



In July 2012, the City issued purchase order 342316-OP in the amount of $54,000 to PMI to provide rubberized emulsion aggregate slurry (REAS) materials and delivery for the rehabilitation of the asphalt walkway in Palisades Park and in various alleys. In May 2012, staff received sole source authorization to purchase REAS, an innovative rubberized slurry product from PMI that is centrally mixed in their plant and ready for application when it reaches the worksite. This product qualified as a soul source product because of the manufacturing technique used in its production. Other vendors have verified that PMI is currently the only manufacturer with the ability and capacity to manufacture a REAS (rubberized emulsion aggregate slurry) through a central mix process, creating a product delivered to the work site ready for application. The central mix process is an in-plant mix process that provides accurate, tested mixes that are warranted for up to 5 years. Other slurry seals are available, but none have this unique pre-mixed process. Others are delivered and staff must mix the slurry at the site. This product keeps 162 tires out of landfills per approximately 70,000 sq. ft. of asphalt surface paved. Resurfacing alleys with a rubberized slurry seal can be accomplished with minimal preparation, and more alleys can be renovated in less time, extending the life of their surface at a fraction of the cost of demolishing and laying a new asphalt surface. As a result, work efforts are shifting toward alley renovation, rather than replacement.


A change order in the amount of $42,000 was processed in November 2012 for additional slurry materials to re-surface an additional eleven alley segments. The cumulative purchase order total year-to-date is $96,000. Staff has expended $88,208.43 with PMI in FY2012-13 with a remaining balance of $7,791.57 in purchase order 342316-OP. Staff recommends an amendment to purchase order 342316-OP in the amount of $338,333.76 to cover existing commitments and purchase additional material for the remainder of FY2012-13 ($88,333.76) and for FY2013-14 ($250,000). The additional material will be used to re-surface another 20 alleys in FY 2012-13, per Attachment A, and in FY2013-14, staff anticipates re-surfacing an additional 66 alleys, at a cost of $250,000. This would result in a total purchase order amount of $434,333.76 with PMI.



Financial Impacts & Budget Actions

The purchase order amendment to be awarded to PMI is $338,333.76, for a new purchase order total of $434,333.76 (342316-OP). Funds are available in the FY2012-13 budget in division 01421; purchase order will be charged to account 014212.544140.

Budget authority for subsequent budget years will be requested in each budget for Council approval. Future funding is contingent upon Council approval and budget adoption.


Prepared by: Ryan Kraemer, Senior Administrative Analyst





Forwarded to Council:







Martin Pastucha

Director of Public Works


Rod Gould

City Manager



Attachment: A FY 2012-13 Alley Slurry Projects